Do You Think That Banks Are Crooks?

[hemet dennis]

I think the majority of those heading banks just push the boundaries of ethics, i.e. overdraft fees, bailouts vs exorbitant bonuses, etc., but I have a very good opinion of community banks. I have dealt with two small community banks in recent history, and have also dealt with one large nationwide bank conglomerate. The difference is huge. The local bank actually treats me like a human being, and with kindness. The other treated me as prey.

The housing crisis (beginning of the global financial catastrophe) wasn't really caused by banks. It was caused by unbridled fraud by mid level mortgage brokers who raked in huge commissions each time they secured another home loan, and then made worse by those financiers who purchased insurance policies (were set to cash in) when the loans went bad (AIG went under because it couldn't pay the losses it sustained - that seems borderline criminal to me too)

Those who purchased homes they knew they could never afford are just as much to blame. I know the fraud happened like this because I bought my house during the bubble. I was encouraged to take out a huge loan, with no income verification (I didn't even have a job, only a plan for my eventual self employment!) I knew I couldn't afford the payments and the way it was being offered scared me - I thought I would get in trouble for fraud by going that route! This was the subprime market. Nevertheless, those who allowed the crisis to occur received bailouts and bonuses while a majority of homeowners lost money, even the responsible homeowners, when the bubble burst.

Who is to blame? Surely they saw the fall coming?! Where/who did the bailouts come from?

Bush warned of the housing bubble back in 2001.

 

[Stephanie739]

It's a possible $9 billion loss and not one trade but many trades.
Were any of the trades done illegally ? If not do you really think someone should go to jail for not doing something illegal ?
If some plumbers cheat and over charge are all plumbers crooks ?
JPMorgan Chase returned its bailout funds on Jun. 9, 2009 and the taxpayers made a profit of $1,745,457,131

What if the "losses" were just money transferred to avoid taxation? I have heard this being considered. That would be criminal.

 

[Stephanie739]

It's a possible $9 billion loss and not one trade but many trades.
Were any of the trades done illegally ? If not do you really think someone should go to jail for not doing something illegal ?
If some plumbers cheat and over charge are all plumbers crooks ?
JPMorgan Chase returned its bailout funds on Jun. 9, 2009 and the taxpayers made a profit of $1,745,457,131

What if the "losses" were just money transferred to avoid taxation? I have heard this being considered. That would be criminal.....who knows..

Dennis, that is interesting info. I had to look a little further. It is good to know that the bailouts have had some success. http://www.dailyfinance.com/2012/03/22/uncle-sams-big-bailout-win-a-25-billion-profit-for-taxpayers/

 

[Stephanie739]

Bush warned of the housing bubble back in 2001.

Good grief...listening to Alan Greenspan talking about regulating the government financial enterprises while the federal reserve has no accountability is a bit ironic, and irritating.

 

[hemet dennis]

What if the "losses" were just money transferred to avoid taxation? I have heard this being considered. That would be criminal.

Then that would be illegal and someone could go to jail for that. Do you have or seen any proof of that ? You should send any proof to the Federal Deposit Insurance Corporation, the Federal Reserve Board, or the Office of the Comptroller of the Currency.

 

[Capvin]

Herlmet!!! of course you must be kidding. First of all this is a federally insured institution which means that me (and maybe you) have in interest in its well being and it being well run. And yes, of course it was more then one trade. If it were only one trade then the higher ups in the bank could be forgiven for not catching it. But no, it was a series of dumb and ridiculous and risky trades that were known and allowed. Stupidy is not yet criminal but in this case there should be some penalty. Why don't wee just stand by and have them do this about 3 to 4 times per year. This was gross negligence and it should have consequences. As for your assumption that its "a possible 9 billion". Well, heck what's a billion or two here and there, maybe it is only 8 billion 900 million. In any case there are just too many zeros in that kind of loss for any normal person to even comprehend.

As for Bush having any premonition of a housing bubble I will not even respond to that. And if he actually had the brains to think that far ahead, then why didnt he do something about it then or the many years that followed? Numerous people talked about a possible housing bubble but that was it, just talk. It is called coffee and conversation. And, yes, I think we can all agree that whatever Bush was he was no economic whiz kid.

 

[hemet dennis]

Herlmet!!! of course you must be kidding. First of all this is a federally insured institution which means that me (and maybe you) have in interest in its well being and it being well run. And yes, of course it was more then one trade. If it were only one trade then the higher ups in the bank could be forgiven for not catching it. But no, it was a series of dumb and ridiculous and risky trades that were known and allowed. Stupidy is not yet criminal but in this case there should be some penalty. Why don't wee just stand by and have them do this about 3 to 4 times per year. This was gross negligence and it should have consequences. As for your assumption that its "a possible 9 billion". Well, heck what's a billion or two here and there, maybe it is only 8 billion 900 million. In any case there are just too many zeros in that kind of loss for any normal person to even comprehend.

As for Bush having any premonition of a housing bubble I will not even respond to that. And if he actually had the brains to think that far ahead, then why didnt he do something about it then or the many years that followed? Numerous people talked about a possible housing bubble but that was it, just talk. It is called coffee and conversation. And, yes, I think we can all agree that whatever Bush was he was no economic whiz kid.

Wow start right off with a zinger on my name ....OUCH.........

If they make stupidity a crime we will need to build a lot more jails. At one time it was not unlawful to drive and text but was it a good idea ? But when you talk of putting people in jail that have not broken any laws where will it stop ?

As for the bush comment that you didn't respond to for a paragraph you should do some research. I think 17 times going to congress and trying to get them to act is more then coffee and conversation. I think we can all agree that he was enough of a whiz kid to be President and if more people had listened to him we wouldn't be where we are now. I'm sorry if the facts hurt but oh well.

 

[Stephanie739]

Then that would be illegal and someone could go to jail for that. Do you have or seen any proof of that ? You should send any proof to the Federal Deposit Insurance Corporation, the Federal Reserve Board, or the Office of the Comptroller of the Currency.

No I don't have proof, never looked and don't really even care. I was just repeating what someone else said, and I do realize now I shouldn't have even said it without reasonable suspicion since that is the way rumors begin, so I do apologize. Honestly I'm tired of even thinking about all the shenanigans that occur and they do occur, but they are over my head and out of my control.

 

[Stephanie739]

It figures! Even when absorbed in my therapeutic chicken hobby, I still find myself right back in politics and government issues!

 

[chickened]

It figures! Even when absorbed in my therapeutic chicken hobby, I still find myself right back in politics and government issues!

Government used to be "behind the scenes" except during war time. Now it is "in your face" at every turn. Won't discuss

nevermind I will regret it.